CV ON LIMITED

Executive Summary

CV ON LIMITED shows strong liquidity and positive financial momentum with increasing cash reserves and shareholder equity, indicative of a healthy financial condition for a micro enterprise. The company effectively manages its working capital and maintains compliance, but its small scale and limited capital base suggest a need to build financial resilience and consider growth strategies. Overall, the outlook is stable with opportunities to enhance long-term financial wellness through prudent expansion and capital strengthening.

CV ON LIMITED - Analysis Report

Company Number: 12452947

Analysis Date: 2025-07-20 11:53 UTC

Financial Health Assessment for CV ON LIMITED

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1. Financial Health Score: B

Explanation:
CV ON LIMITED demonstrates a solid and improving financial position. The company has shown a notable increase in cash reserves and net current assets over recent years, which indicates strengthening liquidity and operational stability. However, the business remains relatively small in scale with modest shareholders' funds and minimal share capital, limiting its resilience against unexpected financial shocks. Overall, the company’s financial "vital signs" are healthy but with room to build greater robustness.

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2. Key Vital Signs

Metric	Latest (FY 2024)	Interpretation
Cash at Bank	£54,769	Strong cash position, a key indicator of liquidity health ("healthy cash flow"). The company has ample cash to meet short-term obligations.
Current Liabilities	£32,807	Current debts are manageable given the cash available, reflecting good working capital management.
Net Current Assets (Working Capital)	£21,962	Positive and increasing working capital ("no symptoms of distress"), supporting ongoing operational needs.
Shareholders’ Funds (Equity)	£21,962	Equity has grown steadily from £3,753 in FY 2023, indicating retained earnings and reinvestment, which is a sign of financial strength.
Share Capital	£100	Minimal capital base; this is typical for small private companies but indicates limited buffer for large investments or absorbing losses.
Employee Count	1 (Director only)	Very lean operation, reducing overhead and financial stress but potentially limiting scalability.

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3. Diagnosis

What the Financial Data Reveals:

• Liquidity and Solvency: The company is in a healthy liquidity position, with cash exceeding current liabilities by a significant margin. This means CV ON LIMITED is well-positioned to cover its immediate obligations without stress, indicating no liquidity "symptoms of distress."

• Profitability and Retained Earnings: While no income statement was provided, the growth in retained earnings (from £3,653 to £21,862) suggests the company has generated profits or retained surpluses over recent years, contributing to increased shareholder equity.

• Operational Scale: With only one employee (the director), the company operates on a micro scale. This provides flexibility and low fixed costs but may constrain growth potential or diversification.

• Financial Resilience: The low share capital and modest overall equity mean the business could be vulnerable to unexpected financial shocks or investments requiring substantial capital outlay.

• Compliance and Governance: All filings are up to date, and the company is active with no overdue accounts or confirmation statements, which indicates good administrative health.

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4. Recommendations

To further improve financial wellness and build resilience, CV ON LIMITED should consider the following actions:

• Build Capital Reserves: Maintain or increase cash reserves to ensure continued strong liquidity. This could involve managing expenses carefully or optimizing revenue streams.

• Explore Growth Opportunities: Consider strategic investments to expand beyond the single-director operation, which may improve scalability and income diversification. This could include hiring additional staff or outsourcing key functions.

• Strengthen Equity Base: While share capital is minimal, the company could explore options such as issuing additional shares if external investment is sought, enhancing the financial buffer.

• Maintain Rigorous Financial Monitoring: Continue monitoring working capital and cash flow closely to detect any early "symptoms" of financial stress, especially if business activities expand.

• Consider Professional Audit or Review: Although exempt, periodic external review or audit might enhance financial transparency and stakeholder confidence, especially if growth or external financing is anticipated.

• Risk Management: Develop contingency plans to manage any potential downturns, given the limited financial cushioning.

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